Short Covering Fizzles Out
20th July 2008
OK, so we had a better follow through on Thursday than I expected, but Friday’s big fall in Technology stocks was probably enough to put an end to a two day short covering rally. While daily stock charts are starting to show signs of a turn around, we still have a long way to go on a weekly basis. We will soon see if the S&P 500 and the DJIA can build on the past week’s lows and establish support at 1200 and 11,000 respectively or if this was just a breather in the current bear market.
JD